Windstream 2012 Annual Report Download - page 66

4
Finally, we took another significant step in the transformation of our company on November 30, 2011, when we acquired
PAETEC Holding Corp. ("PAETEC"). PAETEC added an attractive base of medium to large-sized business customers,
approximately 36,700 fiber route miles, seven data centers, and an experienced sales force focused on serving enterprise-level
customers. This transaction significantly enhanced our capabilities in broadband and business - our strategic growth areas.
Our revenue mix has shifted significantly toward our growth areas as a result of these strategic activities. Revenues from
businesses and consumer broadband were approximately 69 percent of total revenue for the year ended December 31, 2012, as
compared to 42 percent in 2008. Having successfully repositioned the business in growth segments, our focus has shifted to the
organic growth of our strategic revenue streams.
OTHER MERGERS AND ACQUISITIONS
We have completed a number of mergers and acquisitions in the last five years. Most notably, we completed a series of strategic
acquisitions which have assisted in the transformation of our company from a traditional telephone company into an advanced
communications and technology service provider focused on enterprise business customers. These acquisitions included
PAETEC, Q-Comm, Hosted Solutions and NuVox; the reasons for these acquisitions and their meaning to our operations are
discussed in the preceding section.
The following acquisitions were also important steps in the evolution of our company. Although each involved traditional
telephone companies, with a profile similar to ours prior to the transformative acquisitions noted above, each acquisition
provided us increased scale, significant synergies and expanded operating presence in contiguous markets.
Iowa Telecom - On June 1, 2010, we completed the acquisition of Iowa Telecommunications Services, Inc. ("Iowa Telecom"), a
regional communications services provider. This acquisition added 247,000 voice lines, 96,000 high-speed Internet customers
and 25,000 video customers in Iowa and Minnesota. Iowa Telecom expanded our operating presence in contiguous markets in
the midwestern United States.
Lexcom - On December 1, 2009, we completed the acquisition of Lexcom, Inc. ("Lexcom"), a local communications company
in Lexington, North Carolina. The transaction added approximately 22,000 voice lines, 9,000 high-speed Internet customers
and 12,000 cable television customers.
D&E Communications - On November 10, 2009, we completed a merger with D&E Communications, Inc. ("D&E"). The
transaction added approximately 145,000 voice lines, 45,000 high-speed Internet customers and 9,000 cable television
customers in Pennsylvania.
SERVICES AND PRODUCTS
We offer a robust portfolio of services and products to meet the communications and technology needs of our customers. Our
basic offerings are outlined below.
Business
We believe advanced communications and technology services required by today's businesses present our most substantial
opportunity for growth. Through our targeted acquisition strategy and organic growth, we have built a portfolio of advanced
communications services which meet all customers' communications needs.
We serve business customers of all sizes. Our enterprise customers typically subscribe to services such as multi-site networking,
data center, managed services, and other integrated voice and data services. Enterprise customers also include government
contracts, including those under programs such as E-Rate. Small businesses traditionally are served by high-speed Internet,
integrated voice and data and traditional voice services, among others.
Our key business service offerings include:
• Integrated voice and data services: Our integrated services deliver voice and data over a single connection, which
helps our customers manage voice and data usage and related costs. These services are delivered over an Internet
connection, as opposed to a traditional voice line, and can be managed through equipment at the customer premise or
through hosted equipment options, which we are able to provide.